IDB reviewing Guyana’s proposal to tap US$83.5M Norway funds for solar farms

Mar 04, 2022 News

Kaieteur News – In the Wednesday (March 3, 2022) publication of the Kaieteur News, it was reported that the Inter-American Development Bank (IDB) is in the process of reviewing key documents to approve the release of US$244M to Guyana so that the government can fund projects in the health, energy, and infrastructure sectors. It should be noted however that of that sum, US$83.5M is being reviewed by the IDB for investment in Guyana’s energy sector. Importantly, this is not part of the usual loan structure that is organized and granted by the financial institution.

Map showing the Essequibo Coast PV proposed sites location

Map showing the Linden PV proposed site location

Map showing the Berbice PV proposed sites location

That US$83.5M forms part of the revenues Guyana earned from Norway over the years for the preservation of its forests. According to the agreement Guyana has with the Kingdom of Norway, those moneys are to be overseen by the IDB to ensure they are invested in projects that propel the social and economic wellbeing of the Guyanese. As the custodian of those funds, Guyana therefore has to get the IDB’s blessings for its plans to spend the said money. Last year, Vice President, Dr. Bharrat Jagdeo had written to the bank, outlining the PPP/C Administration’s intent to invest those sums in major solar projects.
Documents which are available on the IDB’s website note that the project in question consists of 33MWp of Solar PV in three different grids: 15MWp with a 15MW, 1hr Battery Energy Storage System (BESS) in the Linden Isolated Power System (LIS), 8MWp with an 8MW, 1hr BESS in the Essequibo Coast Isolated Power System (EIS), and 10MWp in the Demerara-Berbice Interconnected System (DBIS)
With respect to the Linden Project, the IDB explained that this will consist of three 5MWp farms specifically at Block 37 (in the vicinity of Bamia on the Linden Soesdyke Highway), Retrieve on the eastern side of the Demerara River, and Dacoura on the western side of the Demerara River. In addition, given the high level of penetration, the farms will be supported by a 15MW, 1hr (minimum) BESS for stability support to the grid.
This newspaper understands that the Block 37 Farm will interconnect to the Amelia’s Ward 13.8kVLoad Feeder, the Dacoura Farm will interconnect to the Wismar 13.8kV Feeder, and the Retrieve Farm will interconnect directly to the 13.8kV Substation in the vicinity of Retrieve. Given the current and projected load in the Linden Community, the project will initially satisfy approximately 38% of the demand with an average annual generation of 24.03GWh resulting in approximately US$5.47M in savings from Government subsidies.
As for the Essequibo Coast project, the IDB said this will consist of two farms specifically 4.4MWp at Ondereeming and 3.6MWp Lima Sands. In addition, given the high level of penetration, the farms will be supported by an 8MW, 1hr (minimum) BESS for stability support on the grid. The IDB explained that the Onderneeming Farm will interconnect to the South 13.8kV Feeder, while the Lima Sands Farm will interconnect to the North 13.8kV Feeder. Given the current and projected load on the Essequibo Coast, the project will initially satisfy approximately 28% of the demand with an average annual generation of 12.21GWh resulting in approximately US$2.11M in savings from displaced fossil fuel generation and from not having to use fossil fuel generation as spinning reserve.
In Berbice, this newspaper understands that three farms will be built which will include a 4MWp at Trafalgar on the West Coast of Berbice; 2MWp at Prospect on the East Coast of Berbice; and 4MWp at Hampshire in Corentyne, Berbice. The IDB said the Trafalgar and Prospect farms will interconnect via an express 13.8kV line to the 13.8kV busbar at the Onverwagt and Canefield substations respectively. The bank said the Hampshire farm will interconnect to the Canfield F3 13.8kV Feeder. Ultimately, the farms will be a part of the DBIS and will only satisfy a very small portion of the demand of the DBIS.